Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 7

Ice Age Ice is trying to decide how many $150,000 commercial ice makers to buy. Assume that each machine is expected to last for seven years. Complete the following table for an interest rate of 5 percent (and assuming no uncertainty). How many ice makers should Ice Age Ice purchase? How low would the price per machine have to fall before the firm would buy four ice makers?